Fuchs v. Menard, Inc.
1:17-cv-01752
N.D. Ill.Sep 29, 2017Background
- Plaintiffs Michael Fuchs and Vladislav Krasilnikov bought dimensional lumber at Illinois Menards stores and allege label sizes (e.g., “1 x 6,” “4 x 4”) misrepresent the lumber’s actual dressed dimensions (e.g., 0.66" x 5.25" and 3.5" x 3.5").
- They sued on behalf of a putative class under the Illinois Consumer Fraud Act (ICFA), and for breach of express and implied warranties and unjust enrichment. Case brought under CAFA.
- Menards moved to dismiss under Fed. R. Civ. P. 12(b)(1), (2), and (6), arguing labels are not false/misleading and therefore no fraud or warranty breach.
- Court accepted allegations as true for the motion-to-dismiss stage but concluded the labels were not misleading as a matter of law and granted dismissal with prejudice for plaintiffs (individuals) and without prejudice as to as-yet-uncertified out-of-state class claims.
- Key factual/legal context: industry and NIST standards distinguish “nominal” (trade) lumber sizes from actual dressed sizes; labels here used customary trade names without inch marks for the width/height and included length markings.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Standing (Article III) | Plaintiffs paid more or would not have purchased if not misled; financial injury suffices. | No functional defect in product; no concrete injury. | Plaintiffs have Article III standing based on alleged financial injury. |
| ICFA — Deceptive Representation | Labels led consumers to believe the listed dimensions were actual sizes. | Labels are literally accurate, follow industry practice (nominal sizes), and consumers can measure width/height—no likelihood of deception. | Dismissed: labels not misleading as a matter of law given literal accuracy, NIST/industry practice, and available information to consumers. |
| Breach of Express and Implied Warranty | Labeling and signage created express warranties and breached implied merchantability (product didn’t conform to labeled size). | No affirmative factual promise about actual dimensions on labels; industry nominal-size practice; product merchantable for ordinary use. | Dismissed: no actionable affirmation of fact on labels; product merchantable; notice requirement not dispositive but claim fails on merits. |
| Unjust Enrichment | Menards retained benefit by selling less lumber than labels implied. | Unjust-enrichment theory depends on same labeling fraud; if labels aren’t deceptive, enrichment is not unjust. | Dismissed: claim premised on alleged fraudulent labeling, which failed. |
Key Cases Cited
- Erickson v. Pardus, 551 U.S. 89 (procedural rule that courts accept complaint allegations as true on a Rule 12 motion)
- Ashcroft v. Iqbal, 556 U.S. 662 (pleading standard for plausible claims and distinguishing factual allegations from legal conclusions)
- Bell Atl. Corp. v. Twombly, 550 U.S. 544 (plausibility standard for complaints)
- Lujan v. Defenders of Wildlife, 504 U.S. 555 (Article III standing requirements)
- Spokeo, Inc. v. Robins, 136 S. Ct. 1540 (statutory violation does not automatically establish concrete injury for standing)
- Mullins v. Direct Digital, LLC, 795 F.3d 654 (reasonableness-of-consumer standard in deception claims)
- Pirelli Armstrong Tire Corp. Retiree Med. Benefits Trust v. Walgreen Co., 631 F.3d 436 (Rule 9(b) applies to fraud-based consumer-fraud claims)
- Bober v. Glaxo Wellcome PLC, 246 F.3d 934 (statement is deceptive if it creates likelihood of deception)
